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Sun 24 Oct, 2004 07:39 am
Sir
My friend just bought a pizzeria for $40,000.
He paid $10,000 and is paying the balance in 20 months.
However, the claimed volume of current business is less than one fourth claimed.
In fact, people have told him that the former owner has a reputation of being 'mad' and yelled at customers etc.
And that people steer clear of this store.
Is there any way to force an adjustment of the selling price?
Or at least, extend the payments from 20 to 30 payments?
dick
Interesting. I don't know myself, but am answering just to
bump the question up in the New Posts lists with hopes someone who does have some knowledge in this area will see it.
Absent fraud, I suspect the answer lies in the language of the contract your friend signed.
Did the seller make any representations about the volume of business the store would generate? Any guarantees of revenue written in the contract? It's doubtful there are, but your statement "... the claimed volume of current business is less than one fourth claimed" has me confused and intrigued.
Not in the contract as far as I know.
Just a verbal statement by the seller.
Dick
Then it's a little hard to give full proof of the agreement.However, a verbal statement which included your friend's purpose of buying this pizzeria should be considered by judges.You can ask a lawyer for help to force the former owner to make a compromise.
It seems that an 'as is' clause was in the contract. But it was her verbal assurances that made him buy.
Is all lost?
Dick
Did your buddy get to take a look in the books? That's the standard procedure here in Germany if you wanna buy a restauarant business.
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